On the morning of January 4, Xiamen City held a centralized start-up event for major projects in 2022. Xiamen Lilong’s annual 13,000-ton spandex project was listed.
Xiamen Lilong currently has a spandex production capacity of 18,000 tons, and has added a new project with an annual output of 13,000 tons of ultra-fine denier spandex. It has a total of 8 high-speed spinning production lines. After being put into operation, it is expected to increase the annual output value by 700 million yuan.
It is reported that there is more than one spandex project started in Fujian this year. The spandex project of Hengshen Synthetic Fiber Technology Co., Ltd., another leading chemical fiber company, in Lianjiang County is also expected to start this year. The total production capacity of Hengshen spandex in the first and second phases currently exceeds 30,000 tons. , and product quality has obvious advantages in the industry and has a good reputation.
The spandex project of Xiamen Lilong and Hengshen spandex expansion will add nearly 50,000 tons of spandex production capacity to Fujian. After all the new production capacity is reached, Fujian’s spandex production capacity will reach about 100,000 tons. The two products have a good reputation in the industry. , will become a force that cannot be ignored in the spandex industry!
The industry begins a new round of production capacity expansion cycle
Greater centralization
The spandex industry has been booming since this year, and the three major spandex giants have successively released new production capacity. As of August 31, 2021, the second phase of the 100,000-ton differential spandex project invested and constructed by Chongqing Spandex has entered the commissioning stage. In December 2021, the first phase of Xinxiang Hua Construction’s annual production of 100,000 tons of high-quality ultra-fine denier spandex fiber project has been fully launched. Hyosung Spandex (Ningxia)’s annual output of 360,000 tons of spandex and its raw material supporting projects will be constructed in five phases in principle. The main body of the current phase one project will also be completed and put into production on December 22, 2021.
At the same time, catalyzed by the high profitability of spandex this year, the spandex industry has begun a new round of production capacity expansion cycle. During the 14th Five-Year Plan period, spandex production capacity has nearly doubled, with Huafeng Chemical and Hyosung Spandex’s production capacity expansion being the main ones. If new production capacity is added in the future Fully reached capacity, the annual production capacity of the spandex industry will reach about 2.05 million tons. The total production capacity of Huafon Chemical, Hyosung China, Xinxiang Chemical Fiber, Huahai Spandex, and Taihe New Materials ranks among the top five in the industry, and the annual production capacity will reach 52, 50, and 23 respectively. , 150,000 tons, 120,000 tons, the industry CR3 will reach 60.97%, and the industry CR5 will reach 74.15%.
Supply supply guarantee
Spandex faces accelerated decline at the end of the year
According to price monitoring, the domestic spandex market continued to decline in December 2021, and the decline continued to expand. As of December 30, 2021, the average market price was 63,800 yuan/ton, down 17.78% from the beginning of the month and up 54.11% year-on-year.
At present, the operating rate of spandex manufacturers remains high, and the supply of goods is sufficient. Some manufacturers maintain full operation, while some manufacturers have declined. The current operating rate is around 8.70%. As the Spring Festival approaches, the impact of power cuts is superimposed, and the start-up in the downstream terminal field has declined. Among them, the operating level of circular knitting machines and wrapped yarns in Xiaoshao, Zhejiang is 40-60%; the operating level of circular knitting machines and wrapped yarns in Jiangsu is 40-60%; the operating level of circular knitting machines, wrapped yarns and warp knitting markets in Guangdong is 50-70% become. Moreover, the current spandex market maintains a bearish sentiment, with insufficient follow-up of overall demand and actual transaction volume slowing down, mostly due to the consumption of early inventory.
But judging from this year’s market, spandex, as a “fabric MSG” with excellent elasticity, can be used to weave high-end fabrics. From a demand perspective, the downstream of spandex is mainly textiles. Amid the uncertainty of the epidemic and the return of textile orders, the demand for sportswear, medical protective fabrics and underwear is relatively strong, and the demand for spandex is still greatly driven. From a supply perspective, industry concentration continues to rise. Leading companies have gained more significant cost advantages through scale expansion. At the same time, it will still take time to add new production capacity, and the business cycle is expected to continue.
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